In the case of Messer Griesheim GmbH (now Air Liquide Deutschland GmbH) v. Goyal MG Gases Private Limited (2026), the Supreme Court of India dismissed an appeal seeking to enforce a summary judgment from an English court, ruling that the foreign decree was unenforceable under Section 13 of the Code of Civil Procedure (CPC).
Case Background
The dispute arose from a joint venture agreement and a subsequent loan of USD 7 million obtained by the respondent (Goyal MG Gases) from Citibank UK, which was guaranteed by the appellant (Messer Griesheim). The Reserve Bank of India (RBI) had permitted the guarantee under the Foreign Exchange Regulation Act, 1973 (FERA), on the specific condition that no liability would extend to the Indian company in the event the guarantee was invoked.
After the respondent defaulted, the appellant paid the bank USD 4.78 million and sued the respondent in the High Court of Justice, Queens Bench Division (English Court) to recover the amount. On February 7, 2006, the English Court passed a summary judgment against the respondent after rejecting its application for leave to defend. The appellant then sought to execute this decree in India.
Key Findings on Section 13 of the CPC
The Supreme Court analyzed whether the English summary judgment met the requirements of Section 13 of the CPC, which defines when a foreign judgment is conclusive. The Court held that the judgment was not enforceable for the following reasons:
- Not on Merits (Section 13(b)): A foreign judgment is not conclusive if it is not “on the merits” of the case. The Court found that the respondent had raised “triable issues” supported by contemporaneous evidence, such as Balance Sheets and Board Minutes, which indicated that the loan payment was treated as an adjustment against other claims and that no liability remained. The English Court’s decision to dispose of the matter summarily without a full trial in the face of such evidence meant the judgment was not rendered on its substantive merits.
- Contrary to Indian Law and RBI Conditions (Section 13(c) & (f)): The foreign judgment ignored the binding statutory conditions imposed by the RBI under FERA. The Court held that a decree that fastens liability contrary to these mandatory permissions attracts the bar of Section 13(f), as it is founded on a breach of Indian law.
- Opposed to Natural Justice (Section 13(d)): By not affording the respondent an opportunity to defend its case despite the existence of “realistic” prospects of success, the English Court deprived the respondent of a fair trial, violating principles of natural justice.
Interpretation of FERA and RBI Permissions
The Court clarified the legal framework regarding the enforcement of judgments involving foreign exchange under Section 47 of FERA:
- Initiation vs. Enforcement: There is a distinction between the “institution of proceedings” and “steps for enforcement”. While parties can initiate legal proceedings to determine liability without prior approval, RBI/Central Government permission is a sine qua non (essential condition) before any steps can be taken to actually enforce a decree or remit funds abroad.
- Regulatory Control: This interpretation balances the value of access to justice (allowing courts to adjudicate liability) with the State’s regulatory control over foreign exchange.
Conclusion
The Supreme Court concluded that because the English judgment fell foul of the exceptions in Section 13(b), (c), (d), and (f) of the CPC, it was not conclusive and could not be executed in India. The appeal was dismissed with no order as to costs .
2026 INSC 401
Messer Griesheim Gmbh (Now Called Air Liquide Deutschland Gmbh) V. Goyal Mg Gases Private Limited (D.O.J. 21.04.2026)



